To protect workers from medical debt, help fill their coverage holes

America has a runaway medical debt crisis.

There are more than 100 million people, that’s 41% of adults, living with medical debt.

Unaffordable medical bills can force people to delay or skip needed care, cut back on expenses, take money out of retirement or college savings, or increase credit card debt.

As out-of-pocket health costs continue to rise, it’s a budget issue straining a growing number of households. The average deductible amount is up 10% over the last five years and 53% over the last ten years.

Medical debt is emerging as an important health reform issue.

Related: The Medical Debt Cancellation Act: Implications & strategies for plan sponsors & advisors

Brokers need to have a solution they can offer clients with workers who are facing the pressure, and the stress, of these rising out-of-pocket costs.

While policymakers consider reforms that could help provide consumers relief, one of the best ways to create your own kind of health reform for your clients is to know how to use existing supplemental health products, either through a voluntary group plan or through a worksite marketing program, to problem-solve now and help consumers avoid the devastation of medical debt now.

The health roulette wheel

I have seen firsthand the havoc that medical bills can wreak on people’s lives.

In my 30 years in the insurance industry, I have worked as an agent, as a company executive and as an advocate for change.

But, more importantly, I have been on the receiving end of what could easily have been a tragic medical diagnosis: colon cancer.

A routine colonoscopy turned very quickly into every imaginable kind of test and body scan, and surgery the very next day.

It wasn’t part of life’s plan. It certainly wasn’t part of the financial plan. Medical debt is a spin of the roulette wheel.

I was fortunate enough at the time to be able to come up with the money needed to pay those unexpected bills, once I got my health back. But most people don’t have enough ready cash in savings to pay the cost of a $5,000 or higher deductible.

Mine was a humbling experience, and it inspired me to help others who weren’t as fortunate as I was in escaping the threat of medical debt. And you have the power to help others, too.

For years, I have worked with Undue Medical Debt, formerly called R.I.P. Medical Debt, helping people free themselves from the clutches of debt.

These aren’t people making bad financial decisions. These are people who have simply had health care needs that surpass their financial resources.

Even individuals on Medicare plans have large out-of-pocket costs.

There is a need here for consumer guidance and empowerment that cannot be denied.

Brokers can help meet this need by educating employers and their workers about the risks and connecting them with supplemental insurance plans that provide protection and peace of mind.

The future of health coverage

Most Americans would struggle to pay a $400 emergency room bill.

Not to mention — even with a fully funded health savings account — if people must take time off from work, they need help with essential household costs like food, their mortgage or rent and child care.

Every worker should have disability insurance, but some workers don’t have it, and those who do have it might not have enough.

Why aren’t we more focused on meeting the day-to-day needs and costs when consumers experience an accident or critical illness? It’s by managing the day-to-day costs, and the deductibles and co-pays, that health care consumers can live life in greater comfort, with more financial security.

Yet, most consumers are unaware of new insurance products that can help pay medical bills. Many people also aren’t aware of the gaps that exist in their coverage until they experience a medical event.

Whether a person has employer coverage, marketplace health insurance or a Medicare plan, their coverage is not without limitations.

Supplemental plans can provide cash directly to consumers for medical expenses, household bills or any other financial needs.

The plans can take care of day-to-day health costs that otherwise can quickly turn into medical debt.

The deductible problem

Having a modest deductible can make workers better health care shoppers, by giving them a financial incentive to think about the cost of care and to avoid unnecessary care.

But, as deductibles continue to rise, consumers should know that they can complement and complete their health insurance with supplemental coverage. Supplemental coverage can help people lower net out-of-pocket costs and create a more predictable cash flow.

You can help people understand that for less than the cost of a cup of coffee a day, they can reduce financial risk, making it easier to budget unexpected health costs.

This is a common-sense way for people to protect themselves from medical debt in the event of an accident or critical illness.

The challenge is getting the message out.

I hope state and federal leaders will consider some fixes that will help ease the burden for consumers.

Until then, we cannot leave workers to suffocate or drown in medical debt that can be easily avoided. We have a responsibility to show consumers there is a better way.

Jeff Smedsrud is the founder of Flex Benefits, a supplemental health insurance provider. He co-founded Healthcare.com and Pivot Health, and he was senior vice president of The IHC Group.